Markets closed unchanged to higher in overnight trading.
- Chicago wheat up 1 cent per bushel,
- Kansas wheat unchanged,
- Minneapolis wheat up 3c,
- MATIF wheat unchanged,
- Corn up 3c,
- Soybeans up 2c,
- MATIF rapeseed up €1 per tonne,
- Winnipeg canola up $4/t,
- Dow Jones up 141 points,
- West Texas crude oil up 25c to US$52.3o per barrel,
- AUD weaker at $0.717,
- CAD to $1.325,
- EUR steady at $1.139.
Black Sea markets have seen some support from recent physical business reportedly booked, and there have been numerous headlines regarding potential further demand. Turkey has apparently expanded its duty-free wheat-import quotas in an effort to cut food inflation, and Iran has been searching for wheat. Without US export sales reports, markets continue to speculate over the amount of export business done from the US, with some suggestions that further tonnage has been booked in the past few days.
Yesterday’s South Korean tender is likely to be filled with North American or possibly Canadian wheat. In light of the government shutdown, US Wheat Associates was putting out a statement today on wheat area. A Reuters survey has pointed to a small decrease in Hard Red Winter wheat area, and unchanged Soft Red Winter wheat area, and a sharp increase in Hard Red Spring wheat area. The Russian Ministry of Agriculture is calling for a 2019 harvest of all grains of 114.3 million tonnes (Mt) versus 112.8Mt this season, but its harvest is still a long way off.
New-season beans are beginning to hit the export stem in Brazil, but ideas are still wide-ranging on the size of the bean crop, though they should begin to consolidate as harvest expands. Weather has not improved, and the crop is running out of time for rain to make a difference. Corn ideas are also starting to get cut there, as Brazil mostly exports corn from it’s safrinha crop, planted following soybeans.
The US Secretary of Agriculture announced the US Government would be reopening its Farm Service Agency offices briefly to help process paperwork for some farmers, but the rest of the US Government shutdown remains in place.
Source: Lachstock Consulting